TD Research discusses USD/JPY outlook in light of this week's release of Japan Q1 GDP report which showed a slowness in Japan's economy and adopts fading USD/JPY rallies strategically targeting a move towards 102 in 2H.

"Another notable reversal that markets are trying to sort through is the slide in Q1 Japanese GDP.

The retreat in Q1 marks the end of a roughly two-year streak without a negative print. Some are now questioning the JPY macro trade story as a slowdown in investment spending accounted for a decent chunk of the slip. We don't think this marks the end of the JPY bullish narrative, especially as growth is only part of the story...," TD argues.